Factors influencing traders' participation in rice export market in Tanzania

Abstract

A complex interplay of socio-economic, product attributes, market forces, and institutional factors influences the participation of rice traders in export markets. Despite many studies on rice traders' export market participation, the challenge of rice traders’ engagement in rice trade and export activities, particularly in developing countries, is context-specific. This paper analyzed specific socio-economic and institutional factors affecting rice traders’ decisions regarding export markets participation in Tanzania. Utilizing survey data from 150 randomly selected rice traders across eight distinct trading zones, the study employs binary regression analysis to examine these factors. Results indicate that gender, years of experience in rice trading, capital availability, and access to market information significantly impact traders' decisions to enter export markets (P<0.05). The findings highlight that inadequate market information and insufficient capital are primary barriers to participation. The study concludes with a recommendation for government intervention to enhance access to market information and credit facilities, thereby boosting rice traders' involvement in export markets to meet the demand in neighboring countries. Also, the government should embrace a multi-stakeholder innovation platform for building and strengthening partnerships and collaborative learning among both public and private actors to improve marketing decisions among rice traders for attaining the Sustainable Development goals in the country.